Goldman: OPEC Must Raise Production

While many market participants view the recent talk of OPEC potentially raising oil production by as much as 1 million bpd as a bearish factor for oil prices, Goldman Sachs continues to be very bullish on oil, and thinks that OPEC not only needs to lift production, but it is mandatory that they do so. “Everybody is all bearish about the recent announcement of a million barrels per day extra supply, but the market needed it. It not only needs it, it is mandatory. Otherwise you just drive the bus off a cliff,” Goldman Sachs’s Head of Global Commodity Research Jeff Currie said at the S&P Global Platts annual crude oil summit in London on Tuesday, as carried by MarketWatch . Supply will not be enough to keep up with strong global demand and stockpiles will continue to drain in the second half of this year, even if OPEC […]